This entire debt-based trouble is not a natural catastrophe like flood or earthquake for which every vulnerable person need to suffer, but the fact of the matter is, it is totally human creation, a catastrophe which is a result of the greed of the few who have most of the world and want even more of it by squeezing those who have nothing in comparison. A catastrophe which could have easily been avoided by putting a check on the greed of the creditor-class. But no, talking about such a check is blasphemy in Capitalist culture which is further hypnotized by Libertarian mindset.
Fact that CDS, an instrument created purely to take advantage of misfortune of the debtor and which should have been declared ILLEGAL in any sane society at first place, has been used as certain kind of indicator talk loud about the tragic truth of legality of unchecked human greed.
It is so unnatural to see the sanity being subdued every where in the first world,for the interest of the creditor class. Austerity,brought upon to satisfy the creditor,forcing people to take out of trash their need of the day(http://www.nytimes.com/2012/09/25/world/europe/hunger-on-the-rise-in-spa...), is a clear indicator of apathy of such a system. No doubt human tend to maximize their profit and work to push their own interest, a celebrated fundamental of a free market and capitalist system, is not a mystic truth which Adam Smith revealed to the world,but a innocent human behavior known to everybody since the inception of the world, which need to be controlled by a higher authority to protect vulnerable-class from predator-class. But what world have seen lately is a free ticket to the predator(read creditor) to put the world on rampage.

The IMF is a complete joke... the "economists" that work there seem to have zero education in their intended field.

These are, most definitely, the one's who got the Bachelors in math, then went to get a PhD with no sufficient base of economics.

The only example I truly need to give is their policy of loans to developing nations follow exactly the "false-paradigm theory." They have a set of guidelines that the countries need to follow, which has no respect to the differing economic structures of the economies (geography, society, politics).

However, what can you expect from an organization that has the word "monetary" in it. Failure.

When individual companies have debt problems investors, banks, management and labor should focus on short term growth, because short term success is what leads to liquidity for debt service and long term survival. Austerity IMF packages drains cash from consumers and government projects, it kills growth much like pre 20th century doctors that drained blood from patients after they were shot. It is more blood, more cash, that they need not less (Keynes, Friedman, Sachs, Stiglits etc all agreed on this).

When individual companies have debt problems investors, banks, management and labor should focus on short term growth, because short term success is what leads to liquidity for debt service and long term survival. Austerity IMF packages drains cash from consumers and government projects, it kills growth much like pre 20th century doctors that drained blood from patients after they were shot. It is more blood, more cash, that they need not less (Keynes, Friedman, Sachs, Stiglits etc all agreed on this).

When individual companies have debt problems investors, banks, management and labor should focus on short term growth, because short term success is what leads to liquidity for debt service and long term survival. Austerity IMF packages drains cash from consumers and government projects, it kills growth much like pre 20th century doctors that drained blood from patients after they were shot. It is more blood, more cash, that they need not less (Keynes, Friedman, Sachs, Stiglits etc all agreed on this).

La V thanks for your reply. I decided to use my last post on the main board on you, out of protest for this ridiculousness of only being allowed to post 3 times, and also for the fact that moderation has completely gone out of control. I hope they can take the criticism. It's actually well-intended , and they know that (bad intentions, moi?)

Anyway, I completely agree with you

If only we'd followed those same values you describe .......

Like my mum keeps telling us (their children - as you know I am in my mid-30s), when they were young there was no credit etc. people actually had to save to buy their stuff: house, car, holiday trips, etc. , now a trip to ye nearest bank saves you all the trouble...

I think that sums up, in a more down-to-earth way, what you brilliantly said above. All praise 'Anglo-economics'! LOL

One should say however, that insidiousness among our 'Anglo economists' hasn't ended yet.

- David Cameron: 'Europe needs to be bold" (I can't even say that this is outright hypocritical, I think it's just in fact an insult to the rest of the World)

- Financial Times, Economist, and all other mouthpieces of this new 'rogue guerrilla' they think they're 'fighting' for some '''obscure''' reason(read with irony) - their articles smell of despair. I fear the worse for all these people.

All they needed to understand is that they just have to shift paradigm, how simple can that be?. Yet they insist on pressing the very same old button, which led them to bankrupcy in the first place (and some to jail).

Talk about stretching the limits of human stupidity.

We're in unchartered waters.... but I fear the worse for some of them. Even the economist has ralised it, with his 'ponzi scheme' graph. Finally some recognition.

Isn’t “Anglo economics” (as it is simplified by some) all about
derailing the laws of mathematics and human logic, as if mathematical
facts could be forced to vanish by economic “newspeak”?

In “Anglo economics”, money, traditionally a means to store ‘goods and
services’, is no longer an equivalent for value (not even a promissory
note) but a means to evoke connotations of services rendered and goods
produced which in reality often never existed.

Since money is no longer ‘stored value’, all debt based on money
becomes ignorable (at least as long as the bondholders are stupid
enough to see it the same way).

However, we know that the overall success of the more recent Western
culture was due to stringent work ethics and sound financial values.

It may be no accident that those countries which broadly followed the
pattern of German sociologist Max Weber (saving, prudence, investment,
sobriety) are still solvent today - mainly countries of northern
Europe -, while those countries of southern and western Europe, which
rather adopted the modern Anglo economics of rapid gratification and
recklessness, are racked now with financial problems.

That’s also why, IMO, the following conclusion of this TE-article is
wrong: “The fact that markets are focusing in 2011 on short-term
growth developments may reflect strong risk aversion after four years
of market turmoil”. - It rather reflects the modern “Anglo economics”
goal setting toward rapid gratification at the cost of sustainable
long-term planning.

This is contrary to the traditional “Protestant” values (though not
being fully congruent with the ‘religious map’) of living plainly,
preaching frugality, working hard, rising early, and anathemizing any
extravagance.

These ‘traditional’ values of Northern cultures have proven to be able
to produce within their societies the large and solid middle class
bodies so dearly needed for the sustainability of Western democracies.

As we watch the European crises, rescue plans, bailouts and "debt
forgiveness" unroll before us, it might occur that there was merit in
those old virtues, and the prudent mottos that so often went with
them: "A penny saved is a penny earned", "waste not, want not", "look
before you leap", "neither a borrower nor a lender be".

. . . This even more so as we also see societies fall to pieces in
countries which wandered most astray from those “Protestant” virtues
that create the state-bearing ‘middle class’ and are hence the basis
for any robust democracy.

Consequently the politicians of countries which ignored good
housekeeping for decades, are facing now huge debt loads and need to
borrow ever larger sums, currently try to pass the Black Jack onto
those countries that acted wiser and more prudent in the past.

Despite the fact that, so far, not one single euro-cent of Italy’s
debt was paid back, Mario Monti already threatened the last standing
‘core country’ of traditional “Protestant” values. He told the German
daily, Die Welt:
“If the Italians do not see concrete rewards for their willingness to
save and reform, there will be protests in Italy against Europe and
also against Germany which is seen as ringleader of EU intolerance and
against the European Central Bank.”

Yes, this seems the logical next step in the Eurozone’s “game of
irresponsibility”:

Be reckless beyond all measure . . . and then blackmail those which were not!

my dear fellow I dont think Euro will disapear.
Signals from t-bond and currency market regarding EURO zone are getting slightl but promisingly better now and based on a best case scenario OECD and ECB macro economical outlooks are showing signs of improvment for EURO zone members..
only anglo media and politicans are still shouting..but this is psychologically understandable as no one in Europe's elite is seriously paying attention to them..it's always a grieve process to realize its vanishing influence..

my realistic scenario is based on the following assumption: if Greece and Portugals mess is sorted out by ECB and ESM/IMF bailouts or an likely orderly EURO exit, Europe's debt crisis will be calmed down to a reasonable level within 2-3 years from now leading to a group of countries who decided to integrate politically further with France and Germany backed financially by the European Stability Mechanism and ECB firepower sorting out Currency system flaws by unifying to a strong core of the European Union.

Unfortunatly this process could lead Europe and US into a flat growth era of 5-7 years and the UK into a lost decade of deflation..
I am sorry for that but if Germany averts Euro bonds introduction it will keep its AAA rating rising like phoenix from the ashes as its sustainable system approach will keep on attracting foreign global investors increasing their FDIs which are nowadays overtaking France' and UK' soon.

In case of Germany's position as save heaven for lenders in Europe and the change of global investment streams this is leading already to a further decrease of public indebtedness and stimulating her domestic consumption which is today significantly accountable for her GDP growth.
The declining European demand for German goods will rebalance Germany's trade overdependency finally to a healthy level for its less competitive neigbours as German exporters are shifting their market focus even more rigorously to BRICs and MINT markets..

Mates, your problem is to acknowledge the fact that this crisis made your system weaker showing the world that the WW2-lucky-looser-Krauts took the better system approach by getting out of that mess even stronger. Mates, please take into account as well that the entire EU/Euro project was economically and politically a huge leap forward for all its members just take Spain or Ireland as a great example regarding their development over the past 30 years!

By the way, the worst case would be a Euro breake up because France is going wild with Le Pen or crazy Socialist polilticians, leading to a northern EURO and a Club Med triggering a lost decade for everyone..but guess who will be returning like phoenix from the ashes then???

It all sounds great, and I would agree with you were not of the fact that as any other great philosophical thesis, it applies well in a vacuum where exogenous variables are excluded. In the real world, one which is permeable, water always finds its way through the fine cracks.

Gamesmith94134: global finance’s Supply-chain Revolution
“Open feedback mechanisms ensure a supply chain’s ability to respond to a changing environment, but, in the case of financial supply chains, feedback mechanisms can amplify shocks until the whole system blows up.” It was because there is no firewall available during the crisis, and the pipeline was open with few operators in the financial control like Mr. Sheng said, also, there is even fewer currencies like Euro-dollar only was available in most transactions, even though the public funds like sovereignty debts were being privatized in the open trade, and it create the explosion by volume in sum of money was credited. Firewalls I took off the technical terminology means there is no safety transitory zone established physically, that our financial system allowed the flow in the supply chain freely as the computerized transaction allowed, and there is less time available for reexamination on lack of control, source of origin, birth of credits.
Especially, when the parties took the international reserves for granted that Fed and ECB cut it interest rates to its minimal for the non-inflationary measure that many would consider money are free if they can beat the time. Generally, the 22 players turned the international financial market into their casino. When their governments were the ones who called to upbeat its economies from the recession after the expansion of the debts hitting it fiscal ceiling, and the slow down cut their productivity in near recession. At the same time, the rigid exchange rate went lopsided that created the tension between the debtor and creditor. It exploded.
At present, the financial system must evolve itself with firewalls that stop contagion of the collateral damage over the money with no backing, and shrink the pool of cash for credit lending. Some might call it deleverage of the past 20 years mishaps, or change of climate in our global financial that the supply-chain must stop and check itself; besides, most of us would know by now that money supply and productivity are not on the same parallel at certain point under the influence of inflation an deflation. Without the assurance of the balance payment or imbalance of its exchange rates, the supply-chain will reverse itself.
Perhaps, I like it better if the sovereignty debt and private investment should not be classified as same in enjoying the low interest rate, that sovereignty debt should be handled separately by the Central Banks and World Bank if it does affect the exchange rate when evaluated by IMF for it answer to lack of control.
Transfer Unions must be established to void unsafe transaction and the Trans-continental Zoning to confirm the source of the origin on all transactions when the transaction is registered to enter its zones, or cut hot cashes that undervaluing ones currency from another that influences the international currency exchange rate. Besides, I see the floating rate system is a joke if it put sovereignty in defensive; and it should go with its yardstick like performance that values at each quarters.
Finally, international banks are “too big to fall” should became a legend only, and they must be downsized that international is not licensed to evade sovereignty. There are more of reforms available in regional account and obey to safety net where it allows. Perhaps, if the banker can purchase these sovereignty bonds and metro bonds from the central bank like FED or ECB instead of chasing the wild goose in the open market; the general public can have some credits available for doing business.
If someone question on the equities dealing among the banks, why only the politicians who talk over the policy on financial and there is no financial police system to oversight the banking as a whole. I think the United Nations Security Council can build a better division on financial security than G7 or G20, and it is inclusive for the globalized finance and my past experience tells me so. Evolve or not, we may stand by and watch the outcome of our present crisis and it not over yet till everyone would feel safe from hegemony through these firewalls. If some suggest cooperation from community in forgiving ones’ debt, it would be worse than my New Year project in losing weight every year, and I have been laughing at myself all my life. Without firewall in safeguard one’s wealth, each would isolate itself from contagion for a long, long time.
May the Buddha bless you?

Almost astonishing is that the IMF specialists appear to discover just know what people in Latin America have known for the last 15-20 years.

Following IMF policies (the endless 'adjustment') took the region to its worst economic situation in decades, with skyrocketing poverty and social decomposition. The institution’s name is now like a “four-letter” word, having only three…

Starting the 21st century, most LA governments, beyond easy labelling by The North, have driven debt/GDP ratios well below 50%, from more than 100%. Notable.

yeah Lula da Silva said that to Sócrates at the time. I would agree that the IMF's modus operandi as with anything is ideological at its basis...

Problem is there's a financial war going on in Europe at the moment. Lobbies, interests, private investors, are taking their money from certain assets and putting them in other assets. There ain't enough for everyone, certainly, not even with all the QE in the world.

US/UK are trying to slowdown the decline of USD supremacy and City iinfluence
by a currency war against the Euro by using hedgfunds and investment banks
attacking Euro t-bonds with short selling and CDS speculation creating an
erosion of trust and confidence in institutional investors market decision in
2009. at the same time anglo media and establishments started their campaign
against Euro zone's inherent imbalances blaming Germany being the root cause
of that mess not taking crucial counter measures to solve that crisis en
plus..

anglos do not distract from your own system default! tell your people the
truth why you became weak economically because of giving up your
manufacturing base in favour of wallstreet and city business you have created
the root cause of global trade imbalances..

anglos do not camouflage you have poisoned the world with the outcomes of
your voodoo economics - an economy of growth fueled by no
underlying value creation based on credit and speculation bubbles - triggering
the debt crisis southern europe is suffering from!

anglos show some solidarity via IMF and EU contributions instead of calling
them PIGS and fourth Reich agitating your fleed of banksters against them by blocking
politically any financial market regulations which would help to extinct its
parasitic and unsocial behaviour against the value creating economies and the
working people of the world..buddies your time is up unless you change..

silly guys these John Mauldin and Mr Anatole Kaletsky..;-)
If all Europe were still bound to this backwarded mindset, there would be now EU and even weaker economies..

What do you think about this?:

Isn’t “Anglo economics” (as it is simplified by some) all about
derailing the laws of mathematics and human logic, as if mathematical
facts could be forced to vanish by economic “newspeak”?

In “Anglo economics”, money, traditionally a means to store ‘goods and
services’, is no longer an equivalent for value (not even a promissory
note) but a means to evoke connotations of services rendered and goods
produced which in reality often never existed.

Since money is no longer ‘stored value’, all debt based on money
becomes ignorable (at least as long as the bondholders are stupid
enough to see it the same way).

However, we know that the overall success of the more recent Western
culture was due to stringent work ethics and sound financial values.

It may be no accident that those countries which broadly followed the
pattern of German sociologist Max Weber (saving, prudence, investment,
sobriety) are still solvent today - mainly countries of northern
Europe -, while those countries of southern and western Europe, which
rather adopted the modern Anglo economics of rapid gratification and
recklessness, are racked now with financial problems.

That’s also why, IMO, the following conclusion of this TE-article is
wrong: “The fact that markets are focusing in 2011 on short-term
growth developments may reflect strong risk aversion after four years
of market turmoil”. - It rather reflects the modern “Anglo economics”
goal setting toward rapid gratification at the cost of sustainable
long-term planning.

This is contrary to the traditional “Protestant” values (though not
being fully congruent with the ‘religious map’) of living plainly,
preaching frugality, working hard, rising early, and anathemizing any
extravagance.

These ‘traditional’ values of Northern cultures have proven to be able
to produce within their societies the large and solid middle class
bodies so dearly needed for the sustainability of Western democracies.

As we watch the European crises, rescue plans, bailouts and "debt
forgiveness" unroll before us, it might occur that there was merit in
those old virtues, and the prudent mottos that so often went with
them: "A penny saved is a penny earned", "waste not, want not", "look
before you leap", "neither a borrower nor a lender be".

. . . This even more so as we also see societies fall to pieces in
countries which wandered most astray from those “Protestant” virtues
that create the state-bearing ‘middle class’ and are hence the basis
for any robust democracy.

Consequently the politicians of countries which ignored good
housekeeping for decades, are facing now huge debt loads and need to
borrow ever larger sums, currently try to pass the Black Jack onto
those countries that acted wiser and more prudent in the past.

Despite the fact that, so far, not one single euro-cent of Italy’s
debt was paid back, Mario Monti already threatened the last standing
‘core country’ of traditional “Protestant” values. He told the German
daily, Die Welt:
“If the Italians do not see concrete rewards for their willingness to
save and reform, there will be protests in Italy against Europe and
also against Germany which is seen as ringleader of EU intolerance and
against the European Central Bank.”

Yes, this seems the logical next step in the Eurozone’s “game of
irresponsibility”:

Be reckless beyond all measure . . . and then blackmail those which were not!

Isn’t “Anglo economics” (as it is simplified by some) all about derailing the laws of mathematics and human logic, as if mathematical facts could be forced to vanish by economic “newspeak”?

In “Anglo economics”, money, traditionally a means to store ‘goods and services’, is no longer an equivalent for value (not even a promissory note) but a means to evoke connotations of services rendered and goods produced which in reality often never existed.

Since money is no longer ‘stored value’, all debt based on money becomes ignorable (at least as long as the bondholders are stupid enough to see it the same way).

However, we know that the overall success of the more recent Western culture was due to stringent work ethics and sound financial values.

It may be no accident that those countries which broadly followed the pattern of German sociologist Max Weber (saving, prudence, investment, sobriety) are still solvent today - mainly countries of northern Europe -, while those countries of southern and western Europe, which rather adopted the modern Anglo economics of rapid gratification and recklessness, are racked now with financial problems.

That’s also why, IMO, the following conclusion of this TE-article is wrong: “The fact that markets are focusing in 2011 on short-term growth developments may reflect strong risk aversion after four years of market turmoil”. - It rather reflects the modern “Anglo economics” goal setting toward rapid gratification at the cost of sustainable long-term planning.

This is contrary to the traditional “Protestant” values (though not being fully congruent with the ‘religious map’) of living plainly, preaching frugality, working hard, rising early, and anathemizing any extravagance.

These ‘traditional’ values of Northern cultures have proven to be able to produce within their societies the large and solid middle class bodies so dearly needed for the sustainability of Western democracies.

As we watch the European crises, rescue plans, bailouts and "debt forgiveness" unroll before us, it might occur that there was merit in those old virtues, and the prudent mottos that so often went with them: "A penny saved is a penny earned", "waste not, want not", "look before you leap", "neither a borrower nor a lender be".

. . . This even more so as we also see societies fall to pieces in countries which wandered most astray from those “Protestant” virtues that create the state-bearing ‘middle class’ and are hence the basis for any robust democracy.

Consequently the politicians of countries which ignored good housekeeping for decades, are facing now huge debt loads and need to borrow ever larger sums, currently try to pass the Black Jack onto those countries that acted wiser and more prudent in the past.

Despite the fact that, so far, not one single euro-cent of Italy’s debt was paid back, Mario Monti already threatened the last standing ‘core country’ of traditional “Protestant” values. He told the German daily, Die Welt:
“If the Italians do not see concrete rewards for their willingness to save and reform, there will be protests in Italy against Europe and also against Germany which is seen as ringleader of EU intolerance and against the European Central Bank.”

Yes, this seems the logical next step in the Eurozone’s “game of irresponsibility”:

Be reckless beyond all measure . . . and then blackmail those which were not!

Yes, nice post! The Anglo world abandoned Weber et al. about the turn of the last century. Western Europe and the US gave up traditional Christianity and the Protestant ethic for socialism. Socialists had a hard time getting respect because classical economists had destroyed socialism’s logic and evidence. Then Keynes came along and provided the economic cover for socialism in the West.

Socialism died in the USSR and Eastern Europe because it threatened to starve people to death. The USSR had consumed most of its wealth by 1970 and lived off loans from its capitalist enemies until Poland rebelled and the whole edifice collapsed.

China ended socialism in 1979 after 30 million Chinese starved to death in the 1960’s. China bought food from the US using loans from the US throughout the 70’s and 80’s.

Southern Europe advanced socialism much more than Northern Europe. Just like the USSR, it managed to survive on loans from the North for decades. Now no one will loan them any more money and they are broke, just as the USSR and China were at the end of their periods of socialism.

The US has tried socialism since the 1930’s and now lives off money loaned to it by the Chinese. Ironic isn’t it? Northern Europe and the US will continue to become more socialist and borrow more until both face the fates of the USSR, China and Southern Europe. Printing money and government stimuli are desperate attempts to prolong life.

Low interest rates??? Only animals act mechanically without thinking, using their instincts and showing born behaviour. Human beings have a brain to think actively before they make important decisions. Would you buy a Ferrari if you had only an average income, but you were offered an extremely cheap credit? Do you buy everything you cannot afford just because you own a credit card? If your answer is yes, nobody can help you.

God... Stop reading the Bible and read an economic textbook for a change. What's next? Interest is a sin against god? Let's all make a chastity vow?
Economics is not about morals, you're better talking to your minister about that.

Protestant 'values' are a mythological invention. All those sayings etc exist in other 'religions' (if protestantism can be considered another religion).

There's no such thing as 'protestant'/'whatever' values, there's Human values. They are, for the most part, universal, and most of them are to be found in all religions (there's for instance a verison of the golden rule in all major religions).

Of course, I agree that so called 'protestant values' can be found in all religions and cultures.

However, since Max Weber, the term "protestant values" is a fixed concept in sociology, economics and history. It is only for a better general understanding of what I was referring to that I use this well-established term here.

I, myself, am neither a Protestant Christian nor a bible reader. I was citing these old common English proverbs (waste not, want not etc.) to contrast the crookedness and profligacy of what has become “Anglo economics” today.

Your Figure 4 seems a text-book example of lousy statistics at the service of worse economics. I believe that, had you done your homework properly, you would have realized that your negatively-sloped regression line does not even begin to be statistically significant. But then, even if a proper correlation existed, that would of course tell you nothing about causation. To say something about that you would need something slightly more sophisticated than just your two-variate simple-minded regression. As it happens, the proper kind of vector autoregressive model has been recently estimated for Italy by two Bank of Italy economists and the results published in November 2011. You can find them at:

Perhaps not surprisingly, the findings include that budget "discretional" variables are partly endogenous, i.e. Granger-causated by — among other things — debt variables. In the terms of your Figure 4 that means that the direction of causality is at least in part the opposite of what your hydraulic Keynesianism leads you to assume: from spread to budget and GDP growth, rather than the other way round.

My personal impression is that the sad professional incompetence testified by your Figure is the result of the childishly irrational desire to shrug off things like fiscal discipline as somehow stuffy and Victorian and right-wing, rather than just common-sense notions suggested by rational foresight. And, alas, that sort of widespread attitude seems at present THE basic political and cultural problem with the Euro system as a whole.

Component activities of organized crime, have a character secret and well organized, of which case made a social impact very negative, in many states he constituting "cancer perfidious" which weakens the power society, threaten the integrity of government, cause increase taxes which adds the price of goods, endanger safety and jobs of citizens, cause damage businesses are in competition, control by force of moneyunions,finally achieving a strong influence in the sphere of economy, social and especially political.

Romania is a mafia state with not working administration governed by organized crime.

Human trafficking in Romania is a state policy and a modern retail which feed corruption and organized crime. Organized crime is constantly looking for legitimate business that could be used as a cover.
According to data held by the Italian authorities in Roma: 85% of prostitutes in Rome are romanian woman. In Milano: eight of ten prostitutes which practice “job” in Milano are romanian woman including Ioana Visan, Berlusconi's hooker from Curtea de Arges (Curtea de Arges, pimps factory from Romania, manager: local corrupt police). Behind such companies, actually hiding network specializing in recruitment of girls who end up prostitute.
These companies are used as a mask, to support illegal activities, to wash the money, but also because leaders mobs to be seen as successful entrepreneurs.
Besides these companies, strongly related with them, in the town of Curtea de Arges-Romania exist more mafia groups(indestructible mafia groups because even the police are headed) which with the complicity of local taxi drivers, recruit, transport, and place girls to practice prostitution, girls which later are trafficked external in Italy, Spain, France, Germany, Austria, etc, by prostitution networks from Curtea de Arges.

...in Denmark, Romania is the country with the most prostitutes and according to Europol, Eurojust, The Times, CNN, the first exporter of prostitution in Europe is Romania.

Geert Wilders: Romania and Bulgaria should be excluded from the EU due to high corruption and irregularities which make them unsuitable as members of the EU

Ove Dahl, chief investigator of the Copenhagen Police: “Romanians are people without honor.Kill you for 15 euros. It's a completely different culture to our. Romanians are the best represented among offenders who come from outside.Since Romania joined the EU, romanians problems increased exponentially.They commit bank robbery, home robberies, serious theft, beg and break shops – all ”.
Rene Hansen officer from department to combat prostitution in Copenhagen:
"Life does not have the same value to them as for us is”.

study europe's post war financial history and the structure of German economy's competitivness first before letting to know the people what you have learned at school regarding economics.

olive oil, bacalau and cheese does not become more competitive if Club Med would be returning to their own currencies.. even if this would be the best scenario for Germany economicalwise on medium-term perspective it cannot be politically the primary goal..

“Decreasing debt is a marathon, not a sprint,” observed Olivier Blanchard, the fund’s chief economist.

Are there countries paying down debt? I hadn't heard that. Good for them. And, amazingly this economist is comparing those that do it quickly with those that do it slowly. That means there must be quite a few doing it each way.

No country is paying down debt. Some of them are kind of, sort of, maybe considering increasing the debt slightly less quickly than others...maybe.

This article is just propaganda. It isn't real economics. Oh wait...that is pretty much all economics these days. And, science. And, think tank output. Nothing has not been corrupted by, (mostly left wing), politics.

In answering the question of “Does austerity promote growth? Of course, it does not. There is no abstract theory that can predict how people will react to an austerity program; and I agree with Guarjardo and others on the results that governments adopted the austerity program tended to be followed by hard times. What does the austerity program mean? It is only the atmospheric perception on the search of the bottom of what or how people lives; it does not promote growth but it show more of the competitiveness in mere opened grounds.
When the story my friend told me of the donation to a college was a bad idea, because the college would engage programs available for its infrastructures, students and professors. It demands perpetuity to fit their budgets in growing. Often, the crisis situation arrives after the expansion of the donor’s buildings or library, or if the donors stopped their offerings; the fee will go up and a budget crisis will arise, especially more of the millionaire professors arrive with their BMW, and the student are going the other way with heavy debts. It is all psychological and economical under the spells of human behavior since most of the administrators and the budgets are not seasonally adjusted or commercially leveraged. It is why most our politicians are reluctant to follow well with the austerity program or obey to cutting the budget because they are not disciplined with the business cycle based on the competitiveness to growth; and they may not understand how the zigzags make the world goes around.
I can understand Mr. Robert J. Shiller may scales the growth on the projective on the economy; since the present austerity programs are not servicing the growth. However, the austerity program enforced to search the bottom line of productivity, the reactions of the politicians and its populace will make a distinguished level of tolerance for the excessiveness and suffering within the system or its governance allows. In addition, such deleverage reestablishes the essences of the missing elements on normalcy of the business cycle or risk factors like interest rates, currency exchanges. When the sovereignty debts created the imbalance crisis by liquidity and solvency; and they indicate the budgetary measures is derailing from the business cycle and becoming political at a sovereignty level. Economy may not grow under the budgetary enhancement as much of the Keynesians believe. It is because growth comes after the business cycle and not even at the level of monetary liquidity or solvency that ECB or FED can project at its continuance of growth. Zigzag make a better search on the bottom line, and growth only comes after.